Those early space moguls did not fund rockets but instead back most of the large astronomical observatories in the USA. Lick Observatory, for example, funded by California railroad magnate James Lick in the 1870s, is comparable to a $1.5 billion dollar project today.

I’ll note that before World War II, the US federal government funded very little science or technology R&D. Most all such activities were supported either by private organizations such as companies, universities and institutions like the Smithsonian or by private individuals. This changed during WWII with the emergence of Big Science projects including the successful development of radar and the atomic bomb. Federal support for science and R&D after the war was further encouraged by the Cold War technology competition with the USSR.

For more about MacDonald’s book and the history of private space initiatives in the US, see: